Towards sustainable European energy markets

Transcription

1 Towards sustainable European energy markets Remko Bos Director of the Energy department Authority for Consumers and Markets Vice President Council of European Energy Regulators

2 Consumer is at the core ACM s activities ACM oversight philosophy Oversight philosophy Create opportunities for consumers and business Keep an eye out for public interests Choose most effective instrument to solve problem Overall goal: enhance consumer welfare

3 Empowering customers delivers real benefits 2014 campaign you snooze, you lose was highly effective In Europe, Dutch consumers are among the most willing to switch energy providers The Hague In 2014, 13 percent of Dutch ). consumers switched energy providers, making the Netherlands one of the leading nations in Europe. On average 6% of European households switched energy provider in 2014.

4 European Commission has developed strategy for a resilient Energy Union with an ambitious climate policy Energy Union to bring greater energy security, sustainability and competitiveness 1. Energy security, solidarity and trust - Working together on SoS 2. Fully integrated European energy market Pillars of Energy Union - Connecting markets (interconnection) - Implementing and upgrading legislation 3. Energy effiency (moderation of demand) 4. Decarbonising the economy 5. Research, Innovation and Competitiveness

5 Delivering the Energy Union requires commitment of all actors, a steady course and European mindset Delivering the Energy Union will likely be challenging National interest European energy markets Some examples: Introduction subsidy schemes Introduction capacity mechanisms National interests driving discussions

6 European energy regulators play an important role in fulfilling many of the pillars of the Energy Union Cooperation at the European level (through ACER and CEER) is essential Monitoring/ oversight Guidance Coordination Market integrity Transparency Market integration Affordability (Guidelines for) market rules Opinions on CB-infrastructure Vision documents Implementation Pilot projects Consumers at core of activities

7 Gas is at the heart of the European energy mix and can act as transition fuel in creating a sustainable market European Energy regulators have developed a vision on two important issues in relation to the possible revision of SoS regulation for gas Gas Target Model CEER/ ACER Security of Supply vision paper

8 Gas Target Model: new mind set for regulatory approach when looking forward to the next decade Implementation 3rd energy package and netcodes is considered key step Wholesale market functioning Self-evaluation process Building blocks Role of gas in complementing RES generation New developments in the gas supply chain -

9 European energy regulators consider completed internal energy market crucial framework for Security of Supply Ensuring Security of Supply should be market based as where possible General approach Market (based instruments) to guarantee SoS Non-market based measures only when necessary What is necessary SoS objectives transparent and clear for market Clear incentive for market to fulfil responsibility Regional cooperation Close cooperation between countries is needed Upfront clarity on cross-border impact is important

10 Disruptive developments can impact energy security, sustainability and competitiveness: the Dutch case Developments concerning the Groningen gas field raise several challenges (Recent) developments Production of Groningenfield is deminishing (+/- 2020: in decline) Need for alternative heating source for households Groningenfield production causes earthquakes in vicinity of the field Strong voice (locals and politicians) to reduce Groningen gas production General issues Technical: how much reduction possible without jeopardizing SoS Political: should gas remain the source for cooking and heating Safety: risks on earthquakes should be minimised NRA attention Alternative depreciation periods? Who pays for new investments? What is impact on market liquidity?

11 Summary of key messages 1. CEER reconfirms the importance of a well-functioning internal energy market and highlights the importance of liquid spot and forward markets; 2. CEER believes security of supply measures should be market based and highlights the importance of regional coordination; 3. Monitoring of energy markets puts NRA s in a good position to advice in periods of transition; 4. Our focus on delivering value to consumers helps to develop cost effective policies that deliver real value for consumers and businesses.

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